Tether’s USDT stablecoin has achieved a significant milestone, reaching an all-time high market capitalization of $100 billion. This represents a remarkable 9% growth since the beginning of the year, solidifying its position as the leading stablecoin in the market. As of March 4, Tether’s market capitalization briefly touched the $100 billion mark, according to data from CoinGecko.
The surge in Tether’s market cap widens its lead over its closest competitor, USD Coin (USDC), issued by Circle. Tether now holds a substantial $71 billion advantage over USDC, establishing its dominance in the stablecoin sector. This places Tether in the same market cap range as major corporations like BP and Shopify.
Operating on 14 different blockchains and protocols, Tether has become the third-largest cryptocurrency by market cap, trailing only behind Ether. It serves as a crucial option for traders seeking stability amidst the volatile crypto market. Tether’s issuer claims that each USDT token is backed 1:1 with reserves, primarily consisting of yield-bearing U.S. Treasury Bills (T-Bills). In the last quarter of 2023, Tether reported a record quarterly profit of $2.85 billion, with $1 billion coming from its T-Bills investments.
The stablecoin sector as a whole has experienced significant growth, with a $3.26 billion increase in market cap over the past eight days, totaling $144.08 billion. This reflects a 2.31% increase, with stablecoins like Tether, USDC, DAI, and FDUSD witnessing notable expansions in supply.
In parallel with the stablecoin sector’s growth, the broader cryptocurrency market has shown signs of recovery, surpassing $2 trillion in total market cap in the last month. Bitcoin has led this resurgence with a 50% surge in price, reaching two-year highs.
However, amidst these positive developments, a lawsuit has emerged involving the cryptocurrency trading platform FTX. The lawsuit alleges FTX’s misuse of Tether (USDT) in a profit-making scheme, implicating FTX and its sister firm, Alameda Research. The complaint accuses them of creating and selling USDT for profit through an unofficial credit line with Deltec Bank & Trust Ltd. without initially funding the purchases. Deltec is also accused of facilitating the misappropriation of customer funds by FTX and Alameda Research. While Tether has not been named as a defendant in the lawsuit, lawyers for the victims have provided extensive evidence to support their case against FTX and its affiliates.
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